The Rajasthan Investment Promotion Scheme, 2019

Dec 20, 2019 | by Avantis RegTech Legal Research Team

Commercial Compliance

The State Government of Rajasthan on December 17, 2019, has issued the Rajasthan Investment Promotion Scheme, 2019 to provide benefits to eligible manufacturing and services sector enterprises.

The Scheme will come into effect from the date of issuance of this order and shall remain in force up to March 31, 2026.

Applicability of The Scheme:

Ø  The Scheme will be applicable to the following classes of enterprise(s) and investment, excluding investment mentioned in the List-1:

(i)                  New and existing enterprises making investment for setting up new units;

(ii)                Existing enterprise making investment for expansion:

Provided that the enterprise shall commence commercial production or operation during the operative period of the Scheme.

Ø  The Scheme will not be applicable to a unit of enterprise if its commercial production or operation has commenced before the issuance of this order or an entitlement certificate has been issued to provide any exemption or benefit under Rajasthan Investment Promotion Scheme-2014 or Rajasthan Investment Promotion Scheme-2010 or Rajasthan Investment Promotion Scheme-2003.

Ø  The State Government, on the recommendation of the State Empowered Committee (SEC), may grant the benefit of the scheme to an enterprise to whom any customized package under the RIPS-2010 or RIPS-2014 has been issued but due to genuine hardship, has failed to avail the benefits, initiate civil work, has failed to start commercial production.

Ø  An enterprise or Agro Cooperative or Producer Organization or Special Purpose Vehicle has availed the applicable benefits in this scheme, such individual enterprise shall be eligible for all the applicable benefits under this scheme as a new enterprise.

Ø  Where an enterprise is engaged in eligible activities of both the categories i.e. Manufacturing and Service.

Ø  The investment made and employment generated in the State of Rajasthan shall only be eligible to be counted for investment and employment.

Ø  The employment generated in the State of Rajasthan shall only be eligible to be counted for Employment Generation Subsidy as an eligible enterprise specified under this Scheme.

Further this Scheme benefits the following:

(i)                  Manufacturing Enterprises

(ii)                Manufacturing Enterprises in Thrust Sectors

(iii)               Service Enterprises

(iv)               Service Enterprises in Thrust Sectors

(v)                Enterprises in Backward and Most Backward Areas

[Order No. F.12(39)FD/Tax/2019-97]


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